Mahindra & Mahindra jumped almost 5 percent followed by Tata Motors, Bajaj Auto, Eicher Motors, Motherson Sumi Systems, TVS Motor Company and Ashok Leyland.
The Indian stock market is trading in the green amid India-China border tensions. Sensex is up 112.07 points or 0.29 percent at 39156.42, and the Nifty gained 31.70 points or 0.28 percent at 11553.50.
Among the sectors, the auto index gained over a percent led by Mahindra & Mahindra which jumped almost 5 percent. It was also the top index gainer. The other gainers included Tata Motors and Bajaj Auto which added 2-3 percent followed by Eicher Motors, Motherson Sumi Systems, TVS Motor Company and Ashok Leyland.
Tata Motors was one of the most active stocks on NSE in terms of volumes with 4,25,89,726 share being traded at 11:33 hours. This was followed by Ashok Leyland (2,73,57,530), Mahindra & Mahindra (1,14,03,265) and Motherson Sumi Systems (1,06,25,549).
Global financial firm HSBC upgraded Tata Motors to a 'buy' and increased the target price to Rs 200 from Rs 120. As per CNBC-TV18, HSBC is of the view that the recovery in the medium and heavy commercial vehicles (M&HCV) could create significant value. HSBC expects a reasonable reduction in the company's net debt over FY22 and FY23 and believes the CV cycle will bottom out in the coming months.
Global research firm CLSA has maintained a buy on Tata Motors with target of Rs 220 per share. It is of the view that JLR is gearing up for a stronger Q2 adding that July and August retail numbers of JLR indicate a QoQ uptick of 57 percent.
Cashflow recovery and cost cuts should lead to strong FCF generation and deleveraging, it added.Technical analyst Ashwani Gujral of ashwanigujral.comhas recommended a buy on Motherson Sumi Systems with a stop loss of Rs 116, target at Rs 128.